What Is the Present Value of a $1,100 Payment Made

question 55

Multiple Choice

What is the present value of a $1,100 payment made every year forever when interest rates are 4.5 percent?

• A) $11,100
• B) $21,089.37
• C) $22,963.14
• D) $24,444.44

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Definitions:

Laws

Rules and regulations that are established and enforced by a governing authority to maintain order and protect people's rights.

Franchise

The right to vote in public, political elections; often discussed in the context of extending this right to different groups historically excluded.

Black Sailmaker

Refers to a historically significant African-American individual or individuals engaged in the craft of making sails, a profession that would have held import both economically and in terms of mobility.

White Employees

Refers to employees who are identified or classify themselves as belonging to the white racial group within the workforce.